Remove Distribution Remove Participating Preferred Remove Sales
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Want to Know How VC’s Calculate Valuation Differently from Founders?

Both Sides of the Table

Things like “ participating preferred stock &# in legalese unsurprisingly never actually call out, “hey, this is the participating preferred language.&# We got a3x participating liquidation preference with interest (not participating with a 3x cap, but 3x participating.

Valuation 405
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Shark Tank Season 4 week 4 breakdown

Lightspeed Venture Partners

Week three’s breakdown covered topics like how hard momentum is to turn around, and how participating preferred stock works. The company has done $400k in sales in less than two years and had an early test deal with a local supermarket chain that they were massively overperforming on. in 2012 sales and $2M in income.

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How do the sample Series Seed financing documents differ from typical Series A financing documents?

Startup Company Lawyer

The primary rights in these documents, ranked in order of importance in my opinion are: Non-participating preferred liquidation preference. The liquidation preference would not apply in this situation, and any distribution to stockholders would trigger the dividend preference. Co-sale rights.

Finance 70
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No Mess (Too Much Liquidation Preference)

ithacaVC

Sometimes, after getting back the LP, the preferred holder then converts to common and gets its prorata share of proceeds left after all LP has been paid (this is called participating preferred). One final background point, a “liquidation event” is a sale of the company and typically NOT an IPO.

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What is an employee retention or M&A carveout plan?

Startup Company Lawyer

Due to aggregate liquidation preferences that may exceed the acquisition price in an M&A deal, common stock may be rendered worthless. If you can’t figure this out yourself, you should probably build a liquidation preference spreadsheet to model how liquidation preferences work depending on M&A transaction value.

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Ecommerce UX Mastery: Beginner to Pro in a Blog Post

ConversionXL

Investing in user experience instead of further ad spend, promotion, or distribution. The best sales copy is full, complete information. Have a Prominent Sales and Specials Section. Around 60% say they are looking for a section that identifies sales and specials. Why Care About Ecommerce UX? Product descriptions matter.

eCommerce 100
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Ecommerce UX Mastery: Beginner to Pro in a Blog Post

ConversionXL

Investing in user experience instead of further ad spend, promotion, or distribution. The best sales copy is full, complete information. Have a Prominent Sales and Specials Section. Around 60% say they are looking for a section that identifies sales and specials. Why Care About Ecommerce UX? Product descriptions matter.